The prices dealers pay for the used cars they later sell have leveled off.
Analysts reading the tea leaves of the automotive market aren’t ready to say that the prices consumers pay will stabilize yet. Prices have stabilized at least temporarily, but they remain historically high.
The Manheim Used Vehicle Value Index tracks the prices dealers pay for the used cars they plan to sell, the types of cars dealers buy, and mileage. It’s a product of Kelley Blue Book parent company Cox Automotive.
Once adjusted for predictable calendar fluctuations, the index stayed essentially flat between December and January. It remains an astonishing 45% higher than one year ago. But its climb has, at least temporarily, halted.
The average used car buyer paid over $28,000 in December after a year of unprecedented price increases.
High prices may have kept some buyers away from sales lots. Americans bought fewer used cars in January. Cox Automotive analysts estimate that total used vehicle sales were down 0.8% year over year in January.
